Smallcap, midcap indices tank up to 3% as profit booking begins after Nifty hits record high
midcap stocks on Tuesday.
Nifty's small and midcap indices lost up to 2-3% each with Indiabulls Real Estate, Infibeam and RITES leading the downside by dropping around 8% each. High-flying PSU stocks from railways and defence were among the top losers in today's sell-off.
Shares of Cochin Shipyard, GRSE and Mazagon Dock lost between 6-7% each while rail stocks RVNL, Jupiter Wagons and Titagarh Wagons dropped between 4-6% each.
The selloff in small and midcap stocks is in contrast to lacklustre trade in Nifty and Nifty Bank.
Nifty PSU Bank lost over 1% with Punjab and Sind Bank, UCO Bank and Maharashtra Bank leading the downside with a 5% fall.
Market experts have been warning investors to avoid the frothy segments of the mid- and smallcaps after a meteoric rise in many pockets.
«We see limited point in trying to find fundamental reasons behind the steep increase in stock prices of several mid-cap. and small-cap.
stocks. There is no meaningful change in the fundamentals of most companies; in fact, they have worsened in many cases.
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